Tritax EuroBox has announced that it has completed the fundraising that it announced on 21 May 2019, raising €135m of gross proceeds in a placing to both existing and new shareholders. The proceeds are to be used to fund both the companies investment pipeline and asset management initiatives within the existing portfolio.
Placing was not NAV dilutive
The placing was conducted at a price of €1.10 per share. This represents a discount of approximately 2.2 per cent. to the closing price of €1.125 per Ordinary Share at the close of business on 20 May 2019 and will be non-dilutive to the Company’s Net Asset Value by reference to the latest basic net asset value per share of €1.09 as at 31 December 2018. The Sterling equivalent placing price has been fixed at 97.02 pence per Placing Share, based on the Relevant Sterling Exchange Rate of 0.8820. It is expected that Admission will become effective, and that dealings in the Placing Shares will commence, at 8:00 am on 29 May 2019. The new shares will full entitlement to the third interim dividend expected to be declared in respect of the period from 1 April to 30 June 2019. Following Admission, the Company’s issued share capital will consist of 422,727,273 Ordinary Shares with voting rights. The Company does not hold any shares in treasury.
Highlights of and Background to the Placing
The announcement on 21 May included the following Highlights of and Background to the Placing:
- Since IPO, the Company has invested in eight prime logistics real estate assets, well positioned in key locations in Germany, Spain, Italy, Belgium and Poland, comprising six standing assets and two pre-let forward funded developments (the “Portfolio“) with an aggregate acquisition price of approximately €558.4 million.
- Tritax Management LLP (the “Manager“) has access to a pipeline of potential new investments (the “Investment Pipeline“) comprising high quality, large scale logistics real estate assets totalling approximately €660 million.
- A significant majority of the Investment Pipeline has been sourced through the Manager’s appointed asset managers Logistics Capital Partners and Dietz AG and otherwise through the Manager’s existing relationships.
- All of the assets comprising the Investment Pipeline have been sourced on an off-market basis and are in line with the Company’s investment policy.
- The Investment Pipeline comprises a mix of standing assets and pre-let forward funded developments. All the buildings are, or will be once completed, of modern specification and built within the last three years.
- These assets comprising the Investment Pipeline are located in Germany, Italy, France and the Netherlands with an average size of approximately 70,000 sq. m., a weighted average unexpired lease term of approximately 11 years and a weighted average net initial yield of 4.8 per cent.
- Furthermore, a number of attractive asset management initiatives have been identified within the Company’s existing portfolio, including asset extension opportunities.
- The Company currently expects that the geared net proceeds of the Placing will be invested or committed within six months of Admission.
- The Placing Shares, when issued, will rank pari passu with the existing Ordinary Shares including the right to receive all dividends and other distributions declared, made or paid after the date of issue, including full entitlement to the third interim dividend expected to be declared in respect of the period from 1 April to 30 June 2019.
Comments from Nick Preston, Fund Manager of Tritax EuroBox
“We are pleased with the support that this Placing has received from existing shareholders and a range of new investors, despite challenging market conditions. Since its IPO in July 2018, the Company has completed the acquisition of eight prime Continental European logistics real estate assets and this fundraising will allow the Company to further strengthen and diversify its portfolio. We look forward to deploying the proceeds of this fundraising into our high quality investment pipeline and identified asset management initiatives in the near term.”